High street retailer Lush has bought its U.S. partner to nearly double its sales size and has promised to invest in rebuilding its British operations, which were severely damaged during the epidemic.
The pool-based retailer, best known for its highly fragrant bath soaps and handmade cosmetics, has returned to profitability in its last fiscal year, according to an account released by Company House next week.
Lush’s co-founder Mark Constantine says the chain has acquired its North American partner, which will add more than 80 percent of its revenue to its single largest market. The contract was valued at C $ 180mn, plus C $ 20mn for deferred payments, and was financed through the sale of assets and surplus cash held by US and Canadian businesses.
However, Constantine said that they had closed their business in Russia after the war in Ukraine. Most of the 48 stores in Russia and 15 in Ukraine are owned by a Russian citizen, with more than 600 employees.
“There is no possibility of selling the business, because we have suspended the supply of goods to Russia. No one knows what the future holds, “he said. Ukrainian stores in Lviv and Dnipropetrovsk are still open.
As of June 30, 2021, Lush was operating through retail outlets in 48 countries and production facilities through subsidiaries, joint ventures, licensors, and franchisees in six countries. The total number of stores was 919, slightly less than the previous year.
The group recorded a pre-tax profit of £ 29mn over a twelve-month period, returning আগের 45mn from the previous year’s loss. Although the turnover has come down from £ 437.8mn to £ 408.7mn.
Lush raised prices by about 7 percent just before Christmas, which Constantine said would likely exploit rising inflation this year. “We are not planning another price increase in the UK,” he added.
Lush used Farlow and other government support for 21 21.9mn in 2021 and আগের 16.8mn in the previous year, while in the UK it benefited from a full year of rate relief of 6.2mn. Sales declines during an epidemic of about a quarter lead to similar cuts in staff levels across the group.
Constantine said competitors sell beauty products, but those who also sell drugs were allowed to open “eat our lunch” during the last lockdown. However, the company plans to invest in the business to grow it again, helped by the low lease terms on many of its assets.
The lease of about one-fifth of British stores, including rents, was renegotiated to reflect the effects of the epidemic on highways, he added.
However, he acknowledged that their numbers were not enough to defeat Trump’s government. Lush plans to invest in opening larger outlets with services such as spas and hairdressers to attract customers.
The company did not pay any dividends to its owners, including Constantine, who described the move as “inappropriate” because of the government assistance used during the epidemic. “We have to invest money now. We have to refit our shops. ” The group has also continued its charitable policy, with Lush raising এর 6.3mn worldwide and donating £ 3.9mn for good deeds.